The Top 7 Benefits of Hiring Internal Candidates

Benefits of Hiring Internal Candidates Talent Management Attributes

What are the Benefits of Hiring Internal Candidates?
When you’re looking to hire new top talent, is it better to hire internally or externally? This is not a new question, and it does not have an easy answer. In our experience of attracting, developing, engaging and retaining top talent, it depends on what you are trying to accomplish.  But one thing is for certain, there are definitely some key benefits of hiring internal candidates.

The Top 2 Benefits of Hiring External Candidates
While we list the 7 top benefits of hiring internal candidates below, there are definitely two major benefits of bringing in outside talent.

  1. New Perspectives, Skills & Approaches
    The one clear and persuasive advantage to hiring from the outside is that you bring new ideas, skills, experiences, and energy aboard. Companies benefit from multiple perspectives and diverse experiences. Outsiders can also send a clear and powerful message to current employees about the need for change in terms of skills, performance expectations, drive, and cultural direction.

    A fresh set of eyes can do wonders to help companies and teams get to the next level.

  2. On-boarding Feedback
    If you hire externally, you will get fresh feedback and data about the impact of your on-boarding processes. If you plan on hiring a lot of new talent, the faster you can incorporate new hires into the fabric of your organization, the faster they will contribute to the company’s overall business success.

The Top 7 Benefits of Hiring Internal Candidates
Here are seven of the top benefits of hiring internal candidates from talent management consulting experts when you are looking for top talent to build current and future capabilities:

  1. Length of Time to Hire
    Look internally first if you need to fill a position quickly. It takes far less time to hire from within because your talent pool is on site, easily accessible, and known. The candidate is also already familiar with how work gets done at your company.
  2. Speed to Productivity
    While there is always a learning curve with a new role, the on-boarding process is usually much more efficient with existing employees. It is generally acknowledged that external hires take up to about two years to be fully productive in their new jobs. Everything is new – they have to build relationships and figure out where to go for support and resources.
  3. Institutional Knowledge
    Hiring internally allows you to build on the employee’s knowledge of how the company works and who does what. They have already developed many of the firm- or industry-specific skills needed to succeed in your environment.
  4. Cultural Fit
    There is no doubt that an employee who does not fit the organizational culture will not be as effective as an employee who understands and adheres to the values and behaviors that the company espouses. Presumably, if you hire from within, you can be pretty certain that the employee understands and is aligned with the organization’s culture.
  5. Morale and Company Loyalty
    If you hire from the outside as a matter of course, you risk undermining employee engagement and their loyalty to the company.  Hiring from within lets employees see real opportunities for career advancement.  If high performers do not see a path toward advancement and growth, they will be discouraged and more likely to leave.
  6. Cost
    Almost always, it is more expensive to hire externally. Hiring managers have come to expect to pay 10 to 30% more for outside hires. This can be because of external hires’ more impressive resumes or because it costs more to lure them away from their current position into one that is somewhat uncertain.
  7. Performance On-the-Job
    Despite getting higher pay, Pennsylvania Wharton School professor Matthew Bidwell’s research on hiring decisions shows that external hires receive lower performance scores during their first two years at a new organization as compared with internal hires in similar positions.  In other words, it often takes longer than expected for new hires to perform.  And, unfortunately, some new hires never quite fit in.

The Bottom Line
If you need to grow headcount, consider your unique situation carefully before hiring.  Prioritize the factors that are most critical to your success.  Then don’t settle.

To learn more about how to hire top talent, download 5 Steps to Defining & Attracting Top Talent

Share:
Facebook Twitter Google+ Email LinkedIn
Files under:  

Comments are closed.

I’ve partnered with LSA Global at two companies now, and I consider them a valuable and trusted training and consulting resource. They recommended just the right solution to address our management development needs and have wonderful facilitators that match YuMe’s culture and style of our management team. I would highly recommend LSA Global to any company wanting to deliver quality learning solutions with a valuable learning and development partner.

Maya Paul
HR Director

LSA’s Employee Engagement Consulting and Survey work has provided critical visibility into: how well our people are holding up under the general economic environment, as well as, the specific challenges that face biotechnology companies in their efforts to discover and develop new medicines; their level of alignment and commitment to XOMA’s Vision and mission critical strategies; how leadership practices and management systems support an environment that engender commitment, and the specific actions that our leaders can take to improve on areas that are important to our people. I highly recommend LSA’s employee engagement solutions.

Chris Wells
Vice President, HR and IT

We contacted LSA to help us with customized management development. LSA worked with me to identify a solution that would meet our exact needs. We decided to start at the top and ran the program for our executive team. It was such a great success that we hope to roll it out companywide. We look forward to a long-term partnership with LSA Global and their team of experts.

Barry L. Byrd, SPHR
Human Resources Manager

I am very impressed with the quality of work and talent. LSA did a great job of listening to my needs and providing the exact management training program expertise I needed to get the job done.

Don Pryor
Director, Business Planning & Analysis

Harmonic has worked with LSA for over 8 years. We have found their partnership extremely beneficial. We recently implemented a Management Development Program that was designed and customized to support our company’s strategic initiative of hiring, building, and retaining key intellectual property and human talent. We worked closely with LSA to target and implement the right solutions with the greatest impact. I would recommend LSA to any company that’s looking for a trusted training and development partner.

Janice Passarello
Director of Human Resources

LSA provided top notch solutions right when and how we needed them. They exceeded my expectations from a speed, quality, and cost standpoint. I recommend them to anyone looking for a true business partner in the Learning and Development arena. The breadth and depth of their expertise has helped us hit tight deadlines across multiple projects.

Fortune 500 Financial Services Company
Director of Infrastructure & Technology

LSA’s approach and ability to bring the best resources to eBay has been a great asset. They really focus on helping us succeed in any way they can and are very flexible in meeting our management and talent needs.

Mike Normant
Learning & Development

ebay

The Next Generation Management Development courses have helped me communicate more effectively with my peers and teammates. By utilizing effective communication techniques such as clarifying and confirming, and asking open ended questions, I have been able to clarify and understand information in situations where I would have otherwise asked limited questions and made false assumptions.

Robert Breckner
Firmware Engineering Manager

We partnered with LSA to pilot a customized behavioral interviewing program to help ensure that we continue to hire the best and brightest as we continue to rapidly scale. LSA’s ability to understand our business and our unique culture combined with their desire to ensure that the best practices framework truly fits our performance environment and is highly adopted by our people is a real blessing. Most other firms want to just ‘give you training.’ Not LSA, they are focused on helping me hit our hiring forecasts and attract A players.

Jennifer Remling
Director of Global Recruiting

AKQA

On behalf of Roche and my staff I would like to sincerely thank you for your help with this. The English as a Second Language (ESL) assessment and coaching that you provided for our team was a great success.

Cam Greig
Associate Director

Roche

The Managing Virtual Teams program was extremely valuable. Your consultant/ facilitator’s fundamental knowledge of Synopsys as a company provided an incredible base to build upon while tackling the complications of managing and working with globally distributed teams. My team walked away walked away with highly useful practices and tools. It was an excellent use of our time.

Debra Martucci
Vice President, Information Technology

Over the years, both at 3Com and now at Redback, I’ve found LSA Global to be a valuable resource. The recent compliance program that they delivered for Redback’s executive and management team was the right solution, of the highest of quality, and customized to our business and culture. I would highly recommend LSA to any company looking for top quality solutions.

Gina Fulton
Vice President of Human Resources

LSA Global’s consultant brought a fresh perspective to our behavioral based interviewing strategy for two key executive positions we needed to fill, and their consultant helped us develop questions that produced a much deeper understanding of candidates’ capabilities. I am confident that the two new executives joining our organization have the right skills to add significant value. Throughout the process LSA was also very responsive in dealing with short lead time requests.

Because of the unique nature of our business, Excel is a core application in our accounting organization. After three attempts to find an Excel consultant who is capable of helping our finance team integrate advanced applications into our work processes we found LSA and Alex. He was not only a “Real” Excel expert but was masterful in helping us identify where to use Excel applications in our processes to increase our group’s efficiency.

SPO Partners & Co
Kim Silva, CFO

I have worked with other training companies and found it to be more of a seller/buyer relationship than one of matching the right expertise to our business issues. That’s what LSA does – ask the hard questions, listen, and understand our business needs. We receive the benefit of their expertise from assistance with personal development plans to enhancing team performance, to looking at enterprise-wide challenges. It’s all about helping our business succeed as we grow. Right now, LSA is providing great ideas, a fresh approach, and valuable guidance as we develop our management team and accelerate our client relationship management results.

Kristin Westland-Kaune
Director, Team Development

LSA helped to meet the needs of my teams within a very narrow timeframe. My team walked away with highly useful management tools and practices. LSA saved us time in delivering the right solution for our specific needs.

Sandeep Kumar
Director, Software Engineering, EPG

Evaluate your Performance

Toolkits

Toolkits

Download key published insights and tools from industry experts highlighting best practices in the areas of talent, strategy and culture.

More

Health Checks

Health Checks

Want to know how you stack up against leading organizations?  Receive a complimentary benchmarking analysis courtesy of an LSA Expert.

More

Whitepapers

Whitepapers

Get up to speed on timely solutions critical to your business. Published by LSA Experts based upon client feedback and key industry trends.

More

Methodology

Methodologies

First we identify the key metrics you want to improve. Then we assemble a dedicated team of elite experts who have successfully solved similar problems with similar clients.

More

Blogs

Stay up to do date with the latest information on how we help high growth companies align their culture and talent with strategy.

More

Case Studies

Client Case Studies

Real world consulting and training approaches from LSA projects, providing insights on how your company can outperform the competition.

More